AYPO Real Estate Law of Contracts
Final Exam with 100% Correct
Answers
1. Which of these is a common type of law encountered in the real estate
profession? - ANSWER A. Real property vs. personal property
B. Fiduciary duties and handling of client finances
C. Consumer protection
2. The term real property refers to: - ANSWER A. Earth's surface
B. Airspace
C. Subsurface
3. Which of these IS NOT one of the basic five tests to determine if an object
or item is a fixture? - ANSWER Size of the object
4. Which of these is not a physical characteristic of real property? - ANSWER
Scarcity
5. Contracts for deed, lease-purchases, and lease-options for longer than ____
days are legally defined as executory contracts. - ANSWER 180
6. The bundle of rights includes: - ANSWER 1. Right of Enjoyment
2. Right of Disposition
3. Right of Possession
,7. Which of these IS NOT a power held by the government in Texas? -
ANSWER Eminent Domain for private use
8. When one is granted a life estate "Pur Autre Vie", the estate ends upon the
death of: - ANSWER A designated third party.
9. Which of these encumbrances generally attaches to the person and not to the
property? - ANSWER License
10.Acts of nature such as mudslides, earthquakes, and volcanic eruptions can
have an immediate and major impact on land known as: - ANSWER
Avulsion
11.Mineral rights can be sold or leased separately from the land. - ANSWER
TRUE
12.Which of these is not considered an "environmental" issue in home-buying?
- ANSWER Termites
13.Which of these primary residences would not be fully protected under the
Texas Homestead Act? - ANSWER A city residence on 12 acres.
14.Which of these IS NOT in the information requested above? - ANSWER
Who is the buyer's employer?
15.Which of these was NOT one of the key court rulings? - ANSWER Earlier
agreements supersede later agreements
,16.Which process requires the breaching party to complete their contractual
obligations? - ANSWER Specific performance
17.The form that generally precedes the rest in most sales transactions is the: -
ANSWER Information About Brokerage Services
18.Which type of listing agreement is the only one to guarantee the broker a
commission in the event of a successful sale? - ANSWER Exclusive-right-
to-sell
19.Which of these forms of ownership allows for unequal interests between the
owners? - ANSWER Tenancy in Common
20.Which of these forms of business provide protection from personal liability?
- ANSWER 1. Corporations
2. LLCs
21.A housing cooperative is a co-op that: - ANSWER Owns real property,
usually residential
22.Which of these professions is NOT regulated by the TREC? - ANSWER
Home mortgage lenders
23.Which of these is an element necessary to form a contract? - ANSWER 1.
Legal Purpose
2. Offer
3. Consideration
, 24.A contract often created by a court based on the actions of the parties and
not on a written agreement is called a(n): - ANSWER Implied contract
25.Once a party has purchased an option to buy: - ANSWER They have the
choice to complete the purchase within the option period or to pass without
further obligation.
Which of these contracts is voidable, and not void? - ANSWER A contract with a
minor (under 18 years of age) for something not considered a life necessity.
Buyer-broker agency is a relatively new concept in the Texas real estate
profession? - ANSWER TRUE
Lease agreements lasting more than ________ must be in writing to be
unenforceable under the Texas Statute of Frauds. - ANSWER One year
The leasehold estate owner is said to hold a ____________ interest. - ANSWER
Reversionary
Which of these would NOT be a requirement to create a valid lease agreement? -
ANSWER Financing disclosure
Which of these IS NOT one of the major types of REITs? - ANSWER
Commercial
Buyer's agents aware of a "stigma." i.e., psychologically impactful event, on a
property are required to disclose the stigma. - ANSWER FALSE
Final Exam with 100% Correct
Answers
1. Which of these is a common type of law encountered in the real estate
profession? - ANSWER A. Real property vs. personal property
B. Fiduciary duties and handling of client finances
C. Consumer protection
2. The term real property refers to: - ANSWER A. Earth's surface
B. Airspace
C. Subsurface
3. Which of these IS NOT one of the basic five tests to determine if an object
or item is a fixture? - ANSWER Size of the object
4. Which of these is not a physical characteristic of real property? - ANSWER
Scarcity
5. Contracts for deed, lease-purchases, and lease-options for longer than ____
days are legally defined as executory contracts. - ANSWER 180
6. The bundle of rights includes: - ANSWER 1. Right of Enjoyment
2. Right of Disposition
3. Right of Possession
,7. Which of these IS NOT a power held by the government in Texas? -
ANSWER Eminent Domain for private use
8. When one is granted a life estate "Pur Autre Vie", the estate ends upon the
death of: - ANSWER A designated third party.
9. Which of these encumbrances generally attaches to the person and not to the
property? - ANSWER License
10.Acts of nature such as mudslides, earthquakes, and volcanic eruptions can
have an immediate and major impact on land known as: - ANSWER
Avulsion
11.Mineral rights can be sold or leased separately from the land. - ANSWER
TRUE
12.Which of these is not considered an "environmental" issue in home-buying?
- ANSWER Termites
13.Which of these primary residences would not be fully protected under the
Texas Homestead Act? - ANSWER A city residence on 12 acres.
14.Which of these IS NOT in the information requested above? - ANSWER
Who is the buyer's employer?
15.Which of these was NOT one of the key court rulings? - ANSWER Earlier
agreements supersede later agreements
,16.Which process requires the breaching party to complete their contractual
obligations? - ANSWER Specific performance
17.The form that generally precedes the rest in most sales transactions is the: -
ANSWER Information About Brokerage Services
18.Which type of listing agreement is the only one to guarantee the broker a
commission in the event of a successful sale? - ANSWER Exclusive-right-
to-sell
19.Which of these forms of ownership allows for unequal interests between the
owners? - ANSWER Tenancy in Common
20.Which of these forms of business provide protection from personal liability?
- ANSWER 1. Corporations
2. LLCs
21.A housing cooperative is a co-op that: - ANSWER Owns real property,
usually residential
22.Which of these professions is NOT regulated by the TREC? - ANSWER
Home mortgage lenders
23.Which of these is an element necessary to form a contract? - ANSWER 1.
Legal Purpose
2. Offer
3. Consideration
, 24.A contract often created by a court based on the actions of the parties and
not on a written agreement is called a(n): - ANSWER Implied contract
25.Once a party has purchased an option to buy: - ANSWER They have the
choice to complete the purchase within the option period or to pass without
further obligation.
Which of these contracts is voidable, and not void? - ANSWER A contract with a
minor (under 18 years of age) for something not considered a life necessity.
Buyer-broker agency is a relatively new concept in the Texas real estate
profession? - ANSWER TRUE
Lease agreements lasting more than ________ must be in writing to be
unenforceable under the Texas Statute of Frauds. - ANSWER One year
The leasehold estate owner is said to hold a ____________ interest. - ANSWER
Reversionary
Which of these would NOT be a requirement to create a valid lease agreement? -
ANSWER Financing disclosure
Which of these IS NOT one of the major types of REITs? - ANSWER
Commercial
Buyer's agents aware of a "stigma." i.e., psychologically impactful event, on a
property are required to disclose the stigma. - ANSWER FALSE
